Savills released their 2023 Caribbean Report. In addition to our Luxury Reports, we also bring curated industry reports to our members from other leading luxury research outlets. Savills has a unique perspective as a London based luxury real estate company. They have released their 2023 Caribbean Report that we are sharing with our members.
Here is a quick, executive summary of the 2023 Caribbean Report
The Caribbean prime residential market is experiencing a surge in demand, with international buyers returning in large numbers. With hybrid working, people are able to spend more time away from home, making the Caribbean an ideal destination.
Embrace the opportunity! The Caribbean offers a high-quality life, with beautiful beaches, ample open spaces, warm climate, and is particularly appealing to those seeking to escape northern hemisphere winters. Several islands have embraced remote working and are actively targeting digital nomads with remote-working visas.
Location and access to amenities play a critical role in property pricing in the Caribbean. Properties with easy access to airports, beach clubs, golf courses, and marinas are highly sought after and command higher prices. Beachfront properties are in high demand and are priced even higher due to a shortage of stock.
The prime residential property market in the Caribbean has seen a steady increase in transactions and pricing since 2019, despite being impacted by the global pandemic. Thanks to the lifting of international travel restrictions and the ingenuity of agents, the market has remained resilient and continues to grow. Buyers are searching for second or retirement homes and are willing to pay premium prices, ranging from $650 per square foot for off-beach villas in Antigua to $2,780 per square foot for beachfront villas in the Cayman Islands.
Branded residences are also a growing trend in the Caribbean, offering buyers hassle-free ownership, security, and rich amenities. The Bahamas leads the market with 27% of the supply of branded residence units, followed by the Cayman Islands (26%) and the Turks and Caicos Islands (23%). The supply of branded residences is set to double over the next five years, providing a fantastic opportunity for US luxury real estate brokers.
2023 Caribbean Report Market Outlook Summary
The Caribbean region is experiencing positive trends driven by a global search for space and quality of life among buyers, which has been further fueled by the pandemic. These trends are expected to continue in the coming years, with each island offering distinct market drivers.
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Slower Price Growth
Despite some economic headwinds, the Caribbean real estate market remains solid with finite supply and competition for prime sites. Location will continue to play a significant role in determining prices, with beachfront properties commanding the highest prices.
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Pandemic-Induced Trends Persist
The pandemic has shifted the priorities of many buyers, driving demand for residences that support quality of life, wellness, and have access to open space. This trend will continue to benefit the Caribbean market, particularly for houses. Remote and hybrid working is here to stay, further supporting second home ownership in the region.
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New High-Quality Supply
The Caribbean region is set to see an increase in high-quality supply, improving the overall quality of stock and expanding the prime residential markets. Branded units are expected to double in the next five years, catering to a growing and diverse buyer base. Turks and Caicos have the highest number of branded residences, with several existing and upcoming schemes including Andaz and Wymara.
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Strong Rental Returns
The rental market in the Caribbean remains robust, particularly as tourism gains momentum in a post-pandemic world. This will drive the sales market, with many buyers choosing to lease their properties during the high season when rental values are highest. The window for rental returns may widen as people spend longer in the Caribbean and work remotely.
In conclusion, the Caribbean region offers positive market outlooks, driven by a global search for space and quality of life, pandemic-induced trends, new high-quality supply, and strong rental returns.
Download the Full 2023 Caribbean Report PDF
A Parting Thought
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